“The prioritised goals of Vietnamese leaders at the moment is to enhance its economic development and to diversify away from any single partner, which is the United States,” said Dr Nguyen Khac Giang, visiting fellow at the ISEAS-Yusof Ishak Institute.
He added railway projects would improve cooperation on the economic and trade fronts with China, as Beijing has been keen to show its support for neighbours in the face of sweeping global US tariffs.
China has been on a charm offensive seeking deeper cooperation with its trading partners, especially in Southeast Asia in the face of its trade war with the US.
CAUTIOUS COOPERATION
However, Dr Nguyen pointed out that the bilateral agreements announced during President Xi’s visit have been limited to cross-border projects.
“The rationale is that, because it’s connecting Vietnam and China, so China should be a prioritised partner in financing and in providing the know-how,” said Dr Nguyen.
The agreements did not involve Vietnam’s larger north-south high-speed railway project, set to link Hanoi in the north with Ho Chi Minh City in the south in around six hours.
He added that if there are any delays with the project, this would be limited to just one area in north Vietnam.
This comes as Vietnam seeks to hedge against China, preventing any potential spillover implications of Chinese financing or investment.
“The north-south (high-speed railway) project is very important and is connecting, basically the whole length of Vietnam,” said Dr Nguyen.
“So it would need to be considered much more in terms of security and defence as well.”
